Servitization in the manufacturing industry

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2021-08-30
Language
en
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Abstract
Servitization shifts the focus from offering products to offering services and this different use of products could lead to circularity as manufacturers have more grip on their products and thus they can keep these products in the cycle. With these new business models manufacturers can also more easily adapt to the customers demand and they can intensify their customer relationship. This new model is connected to another problem that occurs in the manufacturing industry according to the Brabantse Ontwikkelings Maatschappij. This is the relationship between Original Equipment Manufacturers (OEM) and suppliers. These are two parties which are depending on each other, but which are also willing to become circular. This could lead to an OEM that wants its supplier to become circular while the supplier is not able to, but it could also be a supplier that wants to become circular, but which cannot because it cannot live up to the demands of the OEM. The main opportunities and barriers will be discussed through the framework of Martinez et al. (2009), being the following challenges: - Embedded product-service culture - Delivery of integrated offering - Internal processes and capabilities - Strategic alignment - Supplier relationship
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Faculteit der Managementwetenschappen